China’s exports to the US have plummeted by 34.5% in May, marking the sharpest decline in over five years, according to customs data. The drop was largely driven by a decline in shipments to the US, which fell by 18%. In contrast, imports from China dropped by 3.4%, beating economists’ expectations of a 0.9% fall.
Despite the decline, overall Chinese exports rose 4.8% in dollar terms from a year ago, shy of Reuters’ poll estimates of a 5% jump. The US-China trade truce has had little impact on Chinese exports, with analysts saying its effects will be visible in June data.
China’s trade surplus with the US shrank by 41.55% year-on-year to $18 billion, while its total trade surplus increased 25% from a year earlier to $103.2 billion. The decline in US-bound exports has been offset by increases in shipments to Southeast Asian countries, European Union nations, and Africa.
China’s exports of rare earths dropped 5.7% from a year ago, while car and ship exports jumped by 22% and around 5%, respectively. Smartphone and home appliance exports fell around 10% and 6%, respectively.
Trade talks between the US and China are ongoing, with Vice Premier He Lifeng set to meet with Treasury Secretary Scott Bessent in London later in the day. The Geneva trade deal has led to a reduction in tariffs, but analysts warn that existing tariffs will lead to slower export growth by year-end.
China’s Ministry of Commerce has stated that it will continue to review and approve applications for the export of rare earths, citing growing demand for the minerals in robotics and new energy vehicle sectors.
Source: https://www.cnbc.com/2025/06/09/china-may-trade-data-exports-imports-after-tariff-ceasefire-.html